EUR/USD Hovers Near A ‘Border Zone’
2022.06.01 11:15
The ascending trendline is no longer relevant in the H4 timeframe. The EUR/USD has a 60% probability of falling. At the same time, one should not completely rule out the possibility of the pair’s resumption of the upward movement.
We would say that now the euro is in the “border zone,” from where it could grow or plunge. On the 5-minute TF, it is recommended to trade at 1.0607, 1.0636, 1.0663, 1.0697, 1.0749, and 1.0787-1.0806.
When passing 15 points in the right direction, you should set Stop Loss to breakeven. The European Union will publish a report on business activity in the manufacturing sector for May. A similar index will be published in the US. However, such data will not catch the attention of traders.
The speech of ECB President Christine Lagarde will be much more important, from whom the market will again expect specifics on the rate increase, as well as the ADP report in the US on changes in the number of employees in the private sector.
Support and resistance levels are the levels that serve as targets when buying or selling the pair. You can place take profit near these levels. Red lines are the channels or trend lines that display the current trend and show which direction it is better to trade now.
The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines.
Important speeches and reports can greatly influence the movement of a currency pair.
Therefore, during their exit, it is recommended to trade carefully or exit the market to avoid a sharp price reversal.
EUR/USD 4-hour chart technical analysis.
